Saturday, 19 Sep 2020

Determination leads to Success

Introduction 

This analysis examines T-Mobile CEO John Legere’s rhetoric—specifically his commitment to determination, disruption, and customer-oriented. 

Determination

A business leader with unlimited determination, Legere challenges the wireless industry every day to improve it for the consumers. According to Statista T-Mobile the number of subscribers increased by more than double from 33 million in 2010 to 86 million by 2019 (S O’Dea). In an article by Kaja Whitehouse in the NEW York POST, Legere questioned the setup of the wireless industry and why customers were locked into a 24 months contract while they can’t complain or get out of bad service. He said “We are either going to take over this whole industry, or these bastards are going to change, and the whole industry is going to shift. I don’t give a goddamn which. I can’t wait to watch the peckers scream and cry” (Legere). As a determined leader, Legere had a significant impact on T-Mobile’s future, acted on his words to action, and changed the wireless industry landscape. read more

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MoviePass

AMC theaters attempt to compete with MoviePass business model

MoviePass allows members to watch several movies a month for a subscription. The business has been struggling for a while due to the increased cost of their business model.

MoviePass leaders have continuously made changes to their business model to decrease the cost of the program. It started by ending the unlimited watch option, which enabled its members to watch an unlimited number of movies every month. read more

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Steps before Loyalty Development

First Steps in Building a Loyalty Program

How To Build a Loyalty Program?

In this article we will cover the guiding principles for Building a Loyalty Program and if companies should invest in developing one or not!

let’s start by mentioning that in the US alone consumers have more than ONE billion rewards memberships…Imagine how many companies were able to take the steps needed in building a Loyalty Program! read more

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Loyalty

Amazon Prime Shows Loyalty to customers that are on $99 annual plan

Amazon used a different approach this time to show loyalty to existing annual paying members. But also decided to make this decision a profitable one as they always do.

Amazon announced on Friday announced that it has raised the monthly Amazon Prime membership rate from $10.99 per month to $12.99 per month, an increase of 18%. Amazon was quick to note, however, that the $99 annual membership fee for Amazon Prime will remain the same. Students who were paying $5.49 per month for access to Prime will now be charged $6.49.

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3 Lessons Learned From T-Mobile’s Success

3 Lessons learned from T-Mobile’s transformation and its visionary leadership!

This is by far one of the best success stories you can learn from  and be inspired to make a change in your life and where you work.

Nelson Mandela  once said “It always seems impossible until it’s done”, this is exactly what John Legere, CEO of T-Mobile US, Inc.  did in the US wireless market.

He saw something that seemed impossible to others but he actually managed to get it done.

The story starts in 2011 where you had a wireless market that’s very mature and stable…I mean it is concurred by couple of giant companies – as you can see in this chart – that control the market.

Number of subscribers for wireless carriers from 2013 to 1st quarter in 2017 in millions.

Customers were always locked in a 2 years contract for a premium monthly payment. You get limited number of minutes, limited data and sometimes limited coverage too…

2011 was the year that led to the change the rise of T-Mobile. AT&T failed to acquire T-Mobile for all the reasons you can read here. Even though T-Mobile was desperate at some point to be acquired by AT&T to save it from the high churn resulting from the lack of investment in T-Mobile network, that all ended up in T-Mobile favor.

Because the deal fell through, AT&T paid T-Mobile $4 Billion. That includes a $3 billion breakup fee as well as spectrum rights worth another $1 billion.

While the failure of the deal was a big blow to AT&T, it represented something strategic for T-Mobile and its parent company. Not only will it have an extra $3 billion worth of cash in the bank, but the increased spectrum and the new roaming agreement will allow T-Mobile to compete more effectively against its larger rivals.

Now let’s talk about the key lessons from happened in the period from 2011 to 2017.

Lesson #1:

Every failure moment is an opportunity for success

“I have not failed. I’ve just found 10,000 ways that won’t work.” Thomas Edison

T-Mobile was faced by several failure moments, going through this high churn rates in the period from 2007-2011 and also having the acquisition deal fall through. Yet they were able to turn the failure moments into an enormous success that is represented into:

  • Tripling their stock price from 2011 through 2017 is a success and it is no luck, it is a result of a vision, determination, planning from the leadership and hard work from their team
  • read more

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    How to Create True Loyalty

    If you want to create customer loyalty you must appeal to true human emotion. Follow your heart in building customers’ loyalty not strictly based off numbers and what some companies would label as  “best practices.”

    Plato once said  that “only a man who is just can be loyal, and that loyalty is a condition of genuine philosophy.”

    As a loyalty expert myself  I look at creating loyalty from the lens of human relationships.

    Take the relationship we have formed with family and friends for example. Loyalty to our loved ones and those most dear to our hearts is earned or acquired  often times over a span of years and not simply given.

    This emotional bond is based off a series of interactions and experiences that had shared values like integrity and respect.

    That right there, that sums it up.  A series of interactions and experiences…and this is what our customers’ loyalty is  truly all about.

    Customers are loyal to the brands that focus on their user experience not only their monetary value.  To develop a long sustainable brand, the marketing team must study each interaction with the customers clearly and make it joyful and an integral moment for the customer.

    Let’s look at an example: If you are buying an iPhone from Apple. Do you think abut what it is that truly differentiates this brand from the almost identical competitor? It doesn’t often cross our minds as the brand has successfully, time and time again  provided (you ,) the customer with a product  or more so a service that’s reliable. They also ensured that the user experience from the moment you considered buying to the moment after purchasing is full of joy and trust.

    Today many brands have created what they deem a necessity in building customer loyalty; a rewards program. This can be the ultimate error in judgment.

    Companies should be more concerned with the overall user experience.  They must try to put themselves in their customers shoes and truly learn what it is that makes them get out of bed in the morning. Think of these customers as your best friend and your most prized possession. Learn what they are passionate about and what fuels them to purchase your product.  Work really hard on every touch point that will impact the customer . Put all of the touch points together and build a journey for the customer. Don’t treat each touch point in isolation from the other,as mentioned it is a journey that marketers should be ready to explore alongside with the customers.

    Customers are expecting integrity and respect, these are the same values that built this emotional bond between you and your family or friend.

    Therefore companies that focus on understanding everything about their customers succeed in delivering upon their needs and expectations.

    Rewards programs are an essential player in the multitude of items that will create loyalty. But true loyalty i

    Remember to always relate your loyalty journey to that of human emotional intelligence

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    Getting ready for an international assignment, you need to consider this

     

    Going beyond the borders of your homeland is becoming a relatively “inevitable career” move – with few exceptions in the United States. Before hitting the ground, you need to keep these points in mind:

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    You are expected to be “up and running”, day 1

    Expats are hired because of the relative shortage of local expertise. Your new organization is expecting you to perform the moment you hit the ground. Accordingly, make sure you are well prepared to be effective before officially joining on day 1.

    Have a plan for the relocation logistics

    Relocation is hard, and if you have a family, it becomes a horror movie. Poor management of the relocation logistics will directly affect your focus level, hence your overall performance. To overcome this problem, have clear feasibility on the relocation details, timelines, and needed logistics to make sure these activities are smoothly moved out of the way.

    Understand the cultural context

    As obvious as this point might sound, a lot of executive candidates fall into this mistake, especially when they move to a different cultural context. Whilst business mistakes can be mitigated, in many perspectives, cultural mistakes are fatal. Hence, properly understand the context in which you will be operating.

    A fresh start is the most outstanding opportunity humans get

    Relocating to a new country is definitely a challenging mission. However, it’s an outstanding opportunity. You are relatively opening a clean sheet in your career path, which is seriously a merit. So, plan for this move with due attention.

    Even if you were forced to move or some of the move logistics were not up to your expectations (i.e., Package, title, Roles and responsibilities, team size, country safety, cultural fit …etc.) it’s still an outstanding opportunity.

    You are not a tourist! read more

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    10 things to do in the beginning of the fiscal year

    A budget is the numerical representation of a chain of reactions, which consequently means that your performance in month one has the biggest effect on your performance in the following months.

    Hence the objective of this document is to support you with “the starting tips” that would ensure a strong beginning of the fiscal year, especially for B2B oriented businesses, with no further delay, the tips are:

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    Lesson #2 from T-mobile’s Success

    Lesson #2: Creative thinking can open new doors for you!

    I always say there is a room for improvement, a room for innovation. Recently in the past few years T-Mobile proved to one of the biggest wireless markets in the world that shaking up the market is possible.

    For so long the wireless carriers were locking in customers with 2 year contracts. Customers didn’t have a choice to move from one company to the other if the service was not up to their expectations.

    T-mobile went through tough couple of years specially when the deal with  AT&T Inc fell through and they had to work on plan B.

    At that point they have raised enough money to work on rebranding themselves to become the “Un-carrier”.

    Remember when you used to pay per minute rate, then the carriers would allow you to call from 6 pm for free then they would ask you later to commit to a year contract. They simply would lock you in and you can’t get out of that contract. I was one of those customers who would have a good network at work and bad network at home. Being locked in for two years didn’t give me any choice but to keep my service.

    Wireless carriers lived the best years of their lives enjoying low churn rates, high revenue per customer with their high price matched plans. You simply can’t go anyway and you are their slave!!!

    T-Mobile came and in at a time where customers were frustrated but no one was listening to them and this was the golden opportunity. It is a golden opportunity in many business or industries. But it takes a lot of understanding and also courage to simply do the right thing.

    How T-Mobile has changed the market in the US and proved to other carriers that there is a room for creativity in a well established market.

    HOW T-Mobile Changed the Market

    Never think a mature market is TRULY mature!

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